Buy a House in Vietnam Legally for Foreigners: How to

How to Legally Own a House in Vietnam for Foreigners

  • InCorp Editorial Team
  • 18 November 2020
  • 3 minutes reading time

Can a foreigner buy a house in Vietnam? The Vietnamese Law indicates that foreigners or foreign entities can rent, buy, inherit, or receive project-based commercial houses, but not in locations that are prohibited for foreign house ownership.

Foreign entities include foreign enterprises foreign representative offices, branches of foreign banks in Vietnam, and foreign-invested funds companies. As for foreign individuals, they must have the legal right to enter Vietnam as per Vietnamese Law.

Currently, a foreigner can own more than one property thanks to the new Housing Law. However, there is still a limited number of houses that a foreigner or a foreign entity can own in specific areas.

Requirements for Owning a House in Vietnam

To buy a house in Vietnam, you must fulfill one of the two requirements: you are allowed to enter Vietnam legally or you invest in a housing construction project in the country.

1. Individuals who Are Legally Allowed to Enter Vietnam

  • Do not have diplomatic privileges or immunity

 

2. Foreign Individuals who Want to Invest in Projects

  • Obtain a certificate of investment
  • Own project-based houses following the Housing Law of Vietnam
  • Not including constructions in areas related to national defense and security

Rights and Obligations for Owning a House in Vietnam

According to the Housing Law in Vietnam, foreigners or foreign entities must adhere to certain obligations for owning a house in Vietnam. They are also eligible for specific rights as homeowners.

  • Foreigners or foreign entities shall not own more than 250 houses including row houses and villas, or rent/buy/inherit/receive more than 30% of apartment units in the same apartment building
  • Homeownership for foreign individuals are only valid for no more than 50 years based on the agreement, starting from the day when they receive the homeownership certificate
  • A foreign individual is eligible for permanent homeownership if he or she is married to a Vietnamese
  • Foreigners’ rights as homeowners are similar to those of Vietnamese citizens
  • Homeownership for foreign entities are only valid for the length of the duration stated on their investment certificate, starting from the day when they receive the homeownership certificate

How to Buy a House in Vietnam

Here are the principles steps for foreign individuals or foreign entities to purchase a house in Vietnam:

  1. Choose a property and sign a reservation agreement. It is advisable to review your reservation agreement with the help of a professional before signing.
  2. Pay a deposit to the property seller.
  3. Engage a due diligence specialist to conduct a background check. Things to examine include the seller’s identity, registration certificate, property certificate, ownership certificate, and others.
  4. Confirm the transaction by signing a housing contract. Get a Vietnamese translator to examine the contract’s content before signing.
  5. Pay fees and taxes at the local tax office where the property is situated. The seller will pay the income tax and the buyer will pay the registration fee.
  6. Apply for the certificate of ownership.

How Cekindo can Assist

Vietnam’s property market is thriving, where the vacation homes, luxury residential market, apartments, and villas have all seen ongoing growth.

Cekindo can help you buy a house in Vietnam from the most exclusive and sought-after selections. With the help of our specialists, your house purchase process will be a breeze. We ensure that the service we provide you is the best available in the region.

Our expert advice is supported by research-led and professional insights, making sure that you will only get the most updated, unbiased market information when you buy a house in Vietnam.

Find out more by speaking to our experts. Fill in the form below.

Verified by

Daris Salam

COO Indonesia at InCorp Indonesia

With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships.

Frequently Asked Questions

    In Indonesia, there are three company types that you can establish based on your business nature, requirements, and preferences.

    • Local Company (PT): 100% local ownership.
    • Foreign Company (PT PMA): can be entirely owned by foreigners; however, restrictions in business sectors apply
    • Representative Office: a branch of the parent company overseas whose purpose is to conduct marketing-related activities without generating income or profits

    Establishing a PMA Company in Indonesia typically takes around two weeks after completing document requirements. Following establishment, additional steps such as obtaining licenses and registering for Tax ID vary based on business type. Last, some licensing processes may take time, necessitating thorough planning and preliminary assessments of the business plan for a smoother process.

    There are a few things to consider, such as:

    • Prohibit any form of discrimination and provide equal opportunity for Indonesians and expatriates
    • Increase the competence of workers by giving or encouraging job training.
    • Follow the termination procedures (Terminating an employee in Indonesia can be long, tedious, and expensive.
    • Observe working hours, holidays, and overtime regulations
    • Give mandatory employee benefits, including social security and health insurance
    • Withhold only the right amount of income tax on behalf of the employees
    • Follow the wages and other benefits outlined by the law
    • Process work permits for foreign employees

    Within the scope of foreign direct investment in Indonesia, foreign investors can typically do business in two ways:

    • Set up a PMA (Perusahaan Modal Asing)

      • PMA is a local subsidiary in the form of a limited liability corporation for foreign investment reasons

    • Set up a RO (Representative Office)

    According to Law No. 25/2007 on Investment, foreign investors are required to establish a PMA company in order to make direct investments and conduct commercial and business activities in Indonesia. A PMA firm in Indonesia is a legally recognized business entity that can engage in various commercial and business operations as long as it complies with the current laws and regulations. As for RO, its purposes include conducting market feasibility studies and liaison activities.

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Disclaimer

The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind. We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.

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